In stochastic modeling, there has been a significant effort towards finding predictive models that predict a stochastic process' future using minimal information from its past. Meanwhile, in condensed matter physics, matrix product states (MPS) are known as a particularly efficient representation of 1D spin chains. In this Letter, we associate each stochastic process with a suitable quantum state of a spin chain. We then show that the optimal predictive model for the process leads directly to an MPS representation of the associated quantum state. Conversely, MPS methods offer a systematic construction of the best known quantum predictive models. This connection allows an improved method for computing the quantum memory needed for generating optimal predictions. We prove that this memory coincides with the entanglement of the associated spin chain across the past-future bipartition.The quest for simple representations and models of the physical world, often phrased as Occam's famous razor, underlies most scientific pursuits. In this spirit, computational mechanics seeks the most memory-efficient predictive models for stochastic processes-models which track relevant past information about a process, in order to generate statistically faithful future predictions [1-5]. The classically minimal models, ε-machines, have been used in diverse contexts from neuroscience to nonequilibrium contextuality [6][7][8][9][10][11][12][13][14][15]. Recently, it was shown that quantum extensions of ε-machines can further reduce their memory [16], leading recent studies to find memoryefficient quantum means of predictive modeling [17][18][19][20][21][22][23][24][25][26][27].In condensed matter, on the other hand, simplicity is sought after for the description of quantum many-body systems. Tensor networks, such as matrix product states (MPS), for instance, provide an efficient and useful description of one-dimensional quantum systems-i.e., spin chains [28][29][30]. This has led to reliable and powerful numerical methods for probing and simulating properties of multi-partite systems, whose study would be otherwise intractable [31][32][33][34].In this Letter, we develop a connection between εmachines and the MPS representation, shown in Fig. 1. We associate each stochastic process with a suitable quantum state of a spin chain called q-sample, measurement of which generates the corresponding stochastic process. We then show that the classical ε-machine of the process leads to a systematic MPS representation of the q-sample. Conversely, applying MPS methods to this state allows us to construct a q-simulator for the associated stochastic process -the best known quantum model [17,21,22]. Lastly, we show that the entanglement across the past-future bipartition of the q-sample coincides exactly with the quantum memory requirements * Yangchengran92@gmail.com † quantum@felix-binder.net ‡ mgu@quantumcomplexity.org Fig. 1. This Letter connects the complexity of stochastic processes and the representational complexity of spin chains. These (i) lin...